|For immediate release|
The Federal Reserve Board today initiated semiannual publication of its List of Foreign Margin Stocks. The new list--which will be effective March 1 and will supersede the November 9, 1998, list--is the last to be accompanied by a press release. Future lists (the next is scheduled for September 1999) will be published directly on the Board's Internet site.
Stocks on the list meet the Board's criteria in section 220.11 of Regulation T and are eligible for margin treatment at brokers and dealers on the same basis as domestic margin stocks. Other foreign stocks are also eligible if they are deemed by the Securities and Exchange Commission (SEC) to have a "ready market" for purposes of the SEC's net capital rule. The foreign stocks on the Financial Times/Standard & Poor's Actuaries World Indices (FT/S&P list) are not included in the Board's list, but they all qualify for margin treatment under an SEC "no action" letter, which effectively treats these securities as having a "ready market."
With the Board's December 23, 1997, amendments to its margin regulations, all brokers and dealers became able as of January 1, 1999, to offer margin credit on all stocks trading in the Nasdaq Stock Market. Therefore the Board ceased publication of its quarterly List of Marginable OTC Stocks with the November 9, 1999, list.
It is unlawful for any person to cause any representation to be made that inclusion of a stock on the List of Foreign Margin Stocks indicates that the Board or the SEC has in any way passed upon the merits of any such stock or transaction therein. Any references to the Board in connection with the List or any stocks thereon in any advertisement or similar communications is unlawful.
The List of Foreign Margin Stocks effective March 1 is attached.